Dear Friends,
Welcome to spring! We are beginning to unthaw from winter after two incredible snowstorms in February and March. We’ve enjoyed seeing many of you at recent events including the CICA annual conference in Arizona and our most recent educational seminar in Washington, DC. Photos from the CICA annual conference are featured in this edition of Captive Comments. Our next stops include Minneapolis on April 11 and the RIMS annual conference in New Orleans at the end of April. Make sure to visit our booth at the RIMS event, as we plan to have plenty of Ben & Jerry’s ice cream on hand and an opportunity for guests to sign this year’s RIMS poster.

Best wishes from all of us at the State.


Len, Derick & Dan

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Vermont’s Top Captive Regulator is Honored for Contributions to Captive Insurance Industry.
For over 30 years Leonard Crouse has been a leader in insurance regulation and has been credited as a key figure in advancing the captive insurance industry. Crouse, the deputy commissioner for captive insurance for the State of Vermont, has been honored for his efforts with the 2007 Distinguished Service Award. Click here for more.

In case you missed this great article in Business Insurance, click here for the full story.
25 years after law, a top domicile rules

Check out a recent article on Vermont Captive from The New York Times.
Vermont Becomes 'Offshore' Insurance Haven

Vernason Insurance Company of Vermont Pure Innovative Captive Strategies Centrastate Medical Center & RWJ University Hospital RRG Marsh Management Services Inc. Cephalon, Inc. Pure Aon Insurance Managers (USA) Inc. Tyco Safety Holdings, Inc. Pure Marsh Management Services Inc. Allied North America Insurance Company Pure Strategic Risk Solutions (Vermont), Ltd.

CICA Annual Conference, Tucson, AZ
March 11, 2007

State of Vermont and VCIA Educational Seminar, Boston, MA
February 22, 2007

April 11
Minneapolis, MN
State of Vermont and VCIA Captive Educational Seminar & Mixer

April 29
New Orleans, LA
Risk and Insurance Management Society Annual Conference

August 7
Burlington, VT
Vermont Captive Insurance Association Annual Conference

Springtime in Vermont means maple sugaring, spring skiing, spring golf and a collective sigh that we’ve successfully made it through yet another winter.

In this edition of the Taste of Vermont, we’ve highlighted one of Vermont’s most famous maple festivals, a statewide celebration of arts, and some unusual mountain events, as the ski resorts, avid skiers and riders try to hang onto winter for just one more day.

Find out more today.

In each issue, Vermont regulators will answer questions submitted by interested readers. This month's questions are answered by Peter Raymond, Director of Financial Examinations.

Q. Are there investment restrictions on pure captives?

A.There are no investment restrictions on pure captives. We do impose the ‘prudent person’ rule, which says you can only invest in what a ‘prudent person’ would invest. For example, if you propose to invest in gold futures, this may not be allowed, as a prudent person would not invest in this. Generally, you can invest in what is reasonable for an insurance company to invest its assets.

Q. Can a pure captive loan funds to its parent company?

A. Each company and situation is looked at individually. The minimum capital requirement may not be loaned back. The parent company must be investment grade and rated by a major rating company, such as, Moodys, S & P or Fitch. Assuming it is investment grade, a written request may be made to the Captive Insurance Division for its approval. Not all companies are rated and the department will also look at those requests and the individual situations around them.

If you have questions for Vermont regulators, send it to Dan Towle at dan@thinkvermont.com.

This electronic newsletter provides information from VermontCaptive.com. We respect your privacy. If you do not want to receive this e-newsletter automatically, please follow the instructions at the bottom of this page. View our privacy policy. Visit VermontCaptive.com for helpful captive information, links and more.